Understanding Philosophy and Styles Chapter 4: Understanding Philosophy and Styles

Chapter Objectives Discuss the formation of a person’s philosophy of leadership. Differentiate between Theory X and Theory Y of leadership. Examine the most commonly observed styles of leadership Authoritarian Democratic Laissez-faire

Discussion Questions Are people basically good? Is doing work as natural as play? Are you an in-charge type of a leader or a laid-back one?

Leadership Philosophy Explained Fundamental question of human behavior: Do people like work or do they try to avoid it? Douglas McGregor believed managers had two views of human nature with very different assumptions: Theory X Theory Y

Assumptions of Theory X 1. People dislike work & will try to avoid it. 2. People need to be directed & controlled. 3. People want security, not responsibility. What implications does Theory X have for leaders & organizations?

Assumptions of Theory Y 1. People don’t inherently dislike work; doing work is as natural as play. 2. People will show responsibility & self-control toward goals to which they are committed. 3. People accept & seek responsibility. What implications does Theory Y have for leaders & organizations?

Leadership Styles Explained Lewin, Lippitt, & White (1938) conducted research on the impact of leadership styles on small-group behavior. Detailed descriptions of three styles emerged: Authoritarian Democratic Laissez-faire

Authoritarian Style Like Theory X, Authoritarian leaders perceive subordinates as needing direction. Authoritarian leaders exert influence & control over group members. Communication is top-down. The agenda is set by the leaders. Praise/criticism is given freely, but it is based on personal standards.

Outcomes of Authoritarian Style Positive Outcomes: Efficient & productive More can be accomplished in a short period of time Negative Outcomes: Fosters dependence, submissiveness, & decreases individuality Can create hostility & discontent

Discuss When do you prefer authoritarian leadership as a group member and why? How often do you use this style of leadership?

Democratic Style Resembles assumptions of Theory Y Subordinates are capable of working on their own Leader works with subordinates & treats them in an egalitarian manner Leader does not speak down to group members; rather, they speak on the same level

Outcomes of Democratic Style Positive Outcomes: Greater group member satisfaction, commitment, & cohesiveness More friendliness, mutual praise, & group mindedness Stronger worker motivation & greater originality

Outcomes of Democratic Style Negative Outcomes: It takes more time & commitment than authoritarian leadership Can result in inefficiencies & lower productivity

Laissez-Faire Style Dissimilar to both Theory X & Theory Y— typically considered to be nonleadership The leader is nominal & only engages in minimal influence Literally takes a “hands off” attitude The leader does not try to influence or control the group

Outcomes of Laissez-Faire Style Very few, if any, positive outcomes Negative outcomes: Very little accomplished Group members feel directionless Group members become unmotivated & disheartened When, if ever, do you think laissez-faire leadership is appropriate? Why?

Leadership Styles in Practice No one is entirely one style or the other. Our styles shift, depending on the situation. Leadership lies along a continuum: from high leader influence to low leader influence.

Leadership Snapshot: Victoria Ransom Co-founded social media software company with 400 employees and 21,000 clients. Grew up in a farming community in New Zealand where she learned the values of hard work, leading by example and humility that she brings to Wildfire The company instilled and demonstrated a list of values: Passion, team player, humility and integrity. Also on the list were having the courage to speak up and curiosity. Ransom believed that “the best way to undermine a company’s values is to put people in leadership positions who are not adhering to the values.” The company would let employees go who didn’t live up to the values even if they were high performers.

Case Study: Many Managers, Different Styles Based on the assumptions of Theory X and Theory Y, how would you describe each manager’s philosophy and style of leadership? In what way do their attitudes about Vanessa affect their leadership? In this type of customer service setting, which leadership style would be most effective for the bank to meet its goals? From the bank’s perspective, which (if any) manager exhibits the most appropriate leadership? Discuss. What advice would you give to each of the managers to enhance their leadership skills within the bank? What do you think Vanessa can do to prepare herself for her 3-month review?

Summary All of us have a philosophy of leadership based on our assumptions about human nature and work. Three commonly observed styles of leadership: authoritarian, democratic, laissez-faire Understanding how our philosophy of leadership influences our style of leadership is the first step in becoming a more competent leader.